Company Overview

Deepak Nitrite Limited (BSE: 506401, NSE: DEEPAKNTR) published its 55th Annual Integrated Report for FY 2025-26, reporting challenging financial performance amid industry headwinds while maintaining strategic growth initiatives.

Financial Performance

Standalone Results (₹ in Crores)

  • Revenue: ₹2,760.32 (FY26) vs ₹2,675.66 (FY25)
  • EBITDA: ₹344.33 (FY26) vs ₹441.19 (FY25) - decline of 22%
  • Profit Before Tax: ₹225.10 (FY26) vs ₹337.54 (FY25) - decline of 33%
  • Net Profit: ₹188.88 (FY26) vs ₹276.43 (FY25) - decline of 32%
  • Exceptional Items: ₹10.51 crores provision for New Labour Codes impact

Consolidated Results (₹ in Crores)

  • Revenue: ₹7,946.94 (FY26) vs ₹8,365.79 (FY25)
  • EBITDA: ₹1,040.59 (FY26) vs ₹1,175.62 (FY25)
  • Net Profit: ₹550.66 (FY26) vs ₹697.37 (FY25)
  • Total Assets: ₹8,680.68 (FY26) vs ₹7,717.67 (FY25)
  • Total Equity: ₹5,869.28 (FY26) vs ₹5,424.66 (FY25)

Operational Highlights

Manufacturing Expansion

  • Commissioned Nitric Acid plant at Nandesari with capex of ₹515 crores
  • Commissioned Hydrogenation-II and integrated Nitration & Hydrogenation-I facilities at Dahej
  • MIBK and MIBC plant nearing commissioning (expected Q2 FY2026-27)
  • Advanced progress on India's first integrated Polycarbonate project (165,000 MTPA capacity) at Dahej with ₹11,500 crore investment
  • Record production of Phenol and IPA with plants operating at over 175% utilization

Subsidiary Performance

Deepak Phenolics Limited (DPL)

  • Revenue: ₹5,411 crores (FY26) vs ₹5,863 crores (FY25)
  • PAT: ₹540 crores (FY26) vs ₹591 crores (FY25) - decline of 9%
  • Volume growth of 7% despite margin pressures

Deepak Chem Tech Limited (DCTL)

  • Loss: ₹63.75 crores (FY26) vs ₹45.02 crores (FY25)
  • Major projects underway including MIBK & MIBC facilities and Polycarbonate project

Corporate Governance & Leadership

Board Changes

  • Shri Prakash Samudra resigned as Independent Director (April 9, 2025)
  • New appointments: Dr. Arvind Nath Agrawal, Shri Mahesh Chhabria, Ms. Bhumika Batra as Independent Directors
  • Proposed elevations: Shri Maulik Mehta and Shri Meghav Mehta as Deputy Managing Directors
  • Re-appointment of Shri Sanjay Upadhyay as Director (Finance) & Group CFO

Director Remuneration

  • Dr. Deepak C. Mehta (CMD): ₹8.62 crore
  • Shri Maulik Mehta: ₹5.38 crore
  • Shri Sanjay Upadhyay: ₹6.53 crore
  • Total Executive Director Remuneration: ₹23.24 crore

Dividend & Capital Structure

  • Recommended final dividend: ₹7.50 per equity share (375% on face value of ₹2)
  • Total dividend outgo: ₹102.29 crores
  • Dividend payout ratio: 54.15% of standalone PAT
  • Record date: July 27, 2026
  • Issued, subscribed and paid-up equity share capital: ₹27.28 crores (13,63,93,041 shares)

Sustainability & ESG Performance

  • CDP Rating: 'B' in both Climate Change and Water Security
  • DJSI Score: 67/100 (94th percentile)
  • EcoVadis Score: 71/100 (Bronze medal, 82nd percentile)
  • Included in S&P Global Sustainability Yearbook 2026
  • 12% reduction in carbon emissions (tCO2e)
  • 8,19,575 KL water recycled (24% reuse rate)
  • 60,850 MT waste recycled (86% of total waste)
  • 66,58,755 kWh energy savings through renewable energy

Corporate Social Responsibility

  • Mandatory CSR requirement: ₹8.68 crores (2% of average net profit)
  • Actual CSR spending: ₹9.64 crores (exceeding requirement by ₹0.96 crores)
  • Focus areas: Healthcare, Education, Livelihood Enhancement
  • Key initiatives: Deepak Medical Foundation Hospital, Mobile Health Units, STEM education

Credit Ratings & Financial Position

  • Long Term Rating: ICRA AA (Stable)
  • Short Term Rating: ICRA A1+
  • Strong internal controls and risk management framework
  • Robust ERM framework established with Risk Management Committee oversight

Research & Development

  • Deepak Research and Development Centre (DRDC) at Savli, Vadodara
  • 103 professionals team
  • 86 patent applications filed (26 granted)
  • Total R&D expenditure: ₹133.65 crore
  • Focus on process efficiencies and new product development

Forward-looking Outlook

The company maintains a planned investment pipeline of ~₹11,500 Crores for major projects including Polycarbonate resin facility, Phenolics expansion, and downstream derivatives. Long-term feedstock security is ensured through 15-year agreement with Petronet LNG for propylene and hydrogen supply. The outlook remains subject to global economic conditions, geopolitical developments, and competitive pressures.